Expansionary monetary policy ________ interest rates,causing ________ to shift to the ________.
A) lowers; aggregate demand; right
B) lowers; aggregate demand; left
C) raises; aggregate demand; right
D) raises; aggregate demand; left
E) lowers; short-run aggregate supply; right

Question

Quizplus · Accepted Answer

Expansionary monetary policy involves increasing the money supply in order to stimulate economic growth. This leads to a decrease in interest rates, making it cheaper to borrow money and increasing consumer spending and investment. As a result, aggregate demand shifts to the right, as there is more demand for goods and services, and the economy grows.

Expansionary Monetary Policy ________ Interest Rates,causing ________ to Shift to the ________

Expansionary Monetary Policy Interest Rates,causing to Shift to the